Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 2 Thereto Relating to the Removal of Unreliable Quotes From the Exchange's Calculation of the National Best Bid or Offer, 49689-49691 [E5-4628]
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Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2005–080 on the subject
line.
using the exchange’s facilities.
Amending the Amex’s Options Fee
Schedule to include ‘‘merger spreads’’
and ‘‘short stock interest spreads’’ in the
definition of ‘‘Spread Trades,’’ thereby
Paper Comments
rendering these types of trades eligible
• Send paper comments in triplicate
for reduced and capped fees, is a
to Jonathan G. Katz, Secretary,
reasonable measure to improve the
Securities and Exchange Commission,
Exchange’s competitiveness. The
100 F Street, NE., Washington, DC
Commission notes that similar
20549–9303.
proposals to reduce and cap fees for
All submissions should refer to File
certain trades, including those occurring
No. SR–Amex–2005–080. This file
as part of merger spreads and short
number should be included on the
subject line if e-mail is used. To help the stock interest spreads, have been
adopted by other options exchanges.12
Commission process and review your
comments more efficiently, please use
The Amex has requested that the
only one method. The Commission will Commission approve the proposed rule
post all comments on the Commission’s change prior to the thirtieth day after
Internet Web site (https://www.sec.gov/
publication of notice thereof in the
rules/sro.shtml). Copies of the
Federal Register. Granting accelerated
submission, all subsequent
approval of the proposal will allow the
amendments, all written statements
Amex to immediately implement a fee
with respect to the proposed rule
change that is similar to arrangements
change that are filed with the
already in place at other option
Commission, and all written
exchanges. Furthermore, the
communications relating to the
Commission believes that granting
proposed rule change between the
Commission and any person, other than accelerated approval of the proposed
rule change will allow the Amex to
those that may be withheld from the
implement reasonable fee reductions to
public in accordance with the
various market participants without
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
undue delay. Accordingly, the
the Commission’s Public Reference
Commission finds good cause, pursuant
Room. Copies of such filing also will be to Section 19(b)(2) of the Act,13 for
available for inspection and copying at
approving the proposed rule change
the principal office of the Exchange. All prior to the thirtieth day after the
comments received will be posted
publication of notice thereof in the
without change; the Commission does
Federal Register.
not edit personal identifying
V. Conclusion
information from submissions. You
should submit only information that
It is therefore ordered, pursuant to
you wish to make available publicly. All
Section 19(b)(2) of the Act, that the
submissions should refer to File No.
proposed rule change (SR–Amex–2005–
SR–Amex–2005–080 and should be
080), is hereby approved on an
submitted on or before September 14,
accelerated basis.
2005.
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.10 In particular, the
Commission believes that the proposed
rule change is consistent with Section
6(b)(4) of the Act,11 which requires that
the rules of the exchange provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other persons
10 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 15 U.S.C. 78f(b)(4).
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15:23 Aug 23, 2005
Jkt 205001
12 Most of the proposals by other options
exchanges were filed as pilot programs pursuant to
Section 19(b)(3)(A) of the Act, rendering the
proposals effective upon filing with the
Commission. See Securities Exchange Act Release
Nos. 51468 (April 1, 2005), 70 FR 17742 (April 7,
2005) (SR–CBOE–2005–18); 51596 (April 21, 2005),
70 FR 22381 (April 29, 2005) (SR–Phlx–2005–19);
51657 (May 5, 2005), 70 FR 24851 (May 11, 2005)
(SR–Phlx–2005–22); 51787 (June 6, 2005), 70 FR
34174 (June 13, 2005) (SR–PCX–2005–65); and
51828 (June 13, 2005), 70 FR 35475 (June 20, 2005)
(SR–CBOE–2005–42). However, one proposal to
make the fee cap applicable to short stock interest
spread transactions retroactive to January 1, 2005
was filed with and approved by the Commission
pursuant to Section 19(b)(2) of the Act. See
Securities Exchange Act Release No. 52083 (July 20,
2005), 70 FR 43733 (July 28, 2005) (SR–PCX–2005–
67).
13 15 U.S.C. 78s(b)(2).
PO 00000
Frm 00136
Fmt 4703
Sfmt 4703
49689
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4626 Filed 8–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52296; File No. SR–BSE–
2005–30]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
of Proposed Rule Change and
Amendment No. 2 Thereto Relating to
the Removal of Unreliable Quotes
From the Exchange’s Calculation of
the National Best Bid or Offer
August 18, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 27,
2005, the Boston Stock Exchange, Inc.
(‘‘BSE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the BSE. The
BSE filed Amendment No. 1 to the
proposed rule change on August 5, 2005
and withdrew Amendment No. 1 on
August 12, 2005. The BSE filed
Amendment No. 2 to the proposed rule
change on August 12, 2005.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The BSE is proposing to add
subsection (e) of Section 3 of Chapter
XII of the Boston Options Exchange
(‘‘BOX’’) Rules to add provisions for
declaring an away market’s quote(s) in
a particular class of option(s) unreliable,
and to thereby exclude quote(s) from
BOX’s NBBO determination when an
away market: (1) Is disconnected from
the Intermarket Option Linkage
(‘‘Linkage’’); (2) disseminates non-firm
quotes; or (3) has other quoting
problems. The text of the proposed rule
change is available on the BSE’s Web
site (https://www.bostonstock.com), at
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Form 19b–4 dated August 12, 2005
(‘‘Amendment No. 2’’). Amendment No. 2 added
clarifying language and corrected typographical and
technical errors.
1 15
E:\FR\FM\24AUN1.SGM
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49690
Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
the BSE’s Office of the Secretary, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
BSE included statements concerning the
purpose of, and basis for, the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The BSE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to allow BOX to exclude an
away market’s quote(s) from BOX’s
NBBO determination in a particular
option class(es) when that away
market’s quote(s) are unreliable. The
BOX Trading Host, pursuant to
obligations to avoid trade-throughs
under the Intermarket Option Linkage
Plan, in general, filters certain orders to
either trade on BOX if the best BOX
price is at the NBBO, or if the best BOX
price is not at the NBBO, to access the
best price for such order through
Linkage. In certain circumstances, away
markets disseminate unreliable or
inaccessible quotes in a particular
option class(es) to OPRA. BOX proposes
to eliminate such away market
unreliable or inaccessible quote(s) in a
particular class(es) in BOX’s NBBO
determination, thereby only including
in BOX’s NBBO determination market
quotes that are reliable and accessible to
investors. BOX seeks only to exclude an
away market’s unreliable quote(s) in a
particular class(es) from BOX’s NBBO
determination for such time that the
quote(s) remain unreliable. Utilizing
only reliable accessible quotes in the
NBBO determination provides for a
more appropriate NBBO determination
and a significantly more efficient
marketplace.
The procedure for declaring an away
market’s quote(s) unreliable would be
for the Market Operations Center
(‘‘MOC’’) to either: (a) Receive a message
from the away market, OPRA, or the
OLA Administrator; or (b) confirm with
the affected market, that the away
market’s particular quote(s) in a
class(es) are unreliable. Then the MOC
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15:23 Aug 23, 2005
Jkt 205001
would request the Options Official
declare the away market’s quote(s) in a
particular class(es) unreliable. Upon a
declaration that the away market’s
quote(s) is unreliable, the MOC will
both remove the quote(s) from BOX’s
NBBO determination and promptly
notify the affected away market.
Additionally, the MOC will continue to
monitor the reliability of the affected
away market’s quote(s) and resume
inclusion of the affected away market’s
quote(s) in BOX’s NBBO determination
at the end of the trading day or once the
quote(s) is confirmed to be reliable,
whichever occurs first. Quotes of an
away market are confirmed to be
reliable once: (a) A message stating a
quote(s) in a particular option class is
reliable has been received from the
affected away market, OPRA, or the
OLA Administrator; or (b) the MOC has
verbally received confirmation of such
from the affected away market.
2. Statutory Basis
The basis under the Act for this
proposed rule change is that BOX
believes that its proposal is consistent
with Section 6(b) of the Act,4 and
furthers the objectives of Section 6(b)(5)
of the Act 5 in that the proposed rule
change is designed to perfect the
mechanism of a free and open market
and a national market system, protect
investors and the public interest, and
promote just and equitable principles of
trade. Excluding unreliable quotes from
BOX’s determination of the NBBO
would help BOX provide better
executions to customers. Currently, the
execution of customer orders is delayed
when another market appears to be at
the NBBO but such market’s quotes are
inaccessible.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The BSE does not believe the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The BSE has neither solicited nor
received comments on the proposed
rule change.
PO 00000
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00137
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the BSE consents, the
Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BSE–2005–30 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–BSE–2005–30. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of the BSE. All
comments received will be posted
E:\FR\FM\24AUN1.SGM
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Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–BSE–2005–30 and should
be submitted on or before September 14,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.6
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4628 Filed 8–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52295; File No. SR–CFE–
2005–01]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by CBOE
Futures Exchange, LLC Relating to Its
Listing Standards for Security Futures
Products
August 18, 2005.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934 1
(‘‘Act’’) and Rule 19b–7 under the Act,2
notice is hereby given that on July 26,
2005, CBOE Futures Exchange, LLC
(‘‘CFE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change described in Items I, II and
III below, which Items have been
prepared by CFE. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons. CFE also filed
the proposed rule change with the
Commodity Futures Trading
Commission (‘‘CFTC’’), together with a
written certification under Section 5c(c)
of the Commodity Exchange Act
(‘‘CEA’’) 3 on July 25, 2005.
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change 4
CFE is proposing to adopt rules
regarding listing standards for security
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(7).
2 17 CFR 240.19b–7.
3 7 U.S.C. 7a–2(c).
4 With the consent of the CFE, the Commission
has made minor clarifications to the text of the
descriptions in this Part I and to the statement of
purpose in Part II.A below. Telephone call between
David Doherty, Attorney, CFE, and Ira Brandriss,
Special Counsel, and Nathan Saunders, Special
Counsel, Division of Market Regulation,
Commission, August 9, 2005.
1 15
VerDate jul<14>2003
15:23 Aug 23, 2005
Jkt 205001
futures contracts (‘‘Eligibility and
Maintenance Criteria’’) to comply with
the requirements under Section 6(h)(3) 5
of the Act and the criteria under Section
2(a)(1)(D)(i) of the CEA.6 The text of the
proposed rule change is available on
CFE’s Web site (https://cfe.cboe.com), at
CFE’s principal office, and at the
Commission’s Public Reference Room.
The CFE Listing Standards 7 are, for the
most part, identical to the sample listing
standards (‘‘Sample Listing Standards’’)
included in the Commission’s Staff
Legal Bulletin No. 15 (‘‘SLB 15’’),8
except that the CFE Listing Standards:
• Reflect the modifications to the
statutory listing standards requirements
jointly adopted by the Commission and
the CFTC with respect to shares of
exchange-traded funds (‘‘ETFs’’), trustissued receipts (‘‘TIRs’’), shares of
registered closed-end management
investment companies (‘‘Closed-End
Fund Shares’’), and American
Depositary Receipts (‘‘ADRs’’);9
• Establish an approximately equal
dollar-weighting methodology for
physically-settled futures based on
narrow-based security indices (all
narrow-based security index futures are
referred to hereafter as ‘‘NBI futures’’),10
which (i) requires the number of shares
or receipts of each component security
to be rounded up or down to the nearest
multiple of 100 in the course of the
determination of the initial index
composition and any subsequent
rebalancing; (ii) contemplates
mandatory annual rebalancing of such
indices under specified circumstances,
complemented by CFE’s ability to
rebalance indices on an interim basis if
it so elects; and (iii) ensures that
outstanding contracts will not be
affected by any rebalancing; and
• Contain certain provisions that
reflect rule changes that have been filed
by other security futures exchanges
U.S.C. 78f(h)(3).
U.S.C. 2(a)(1)(D)(i).
7 The CFE Listing Standards are set forth in
proposed Policy and Procedure VIII, Eligibility and
Maintenance Criteria for Security Futures.
8 SEC, Division of Market Regulation, Staff Legal
Bulletin No. 15: Listing Standards for Trading
Security Futures Products (September 5, 2001)
(available at https://www.sec.gov/interps/legal/
mrslb15.htm).
9 See Joint Order Granting the Modification of
Listing Standards Requirements Securities
Exchange Act Release No. 46090 (June 19, 2002), 67
FR 42760 (June 25, 2002) (ETFs, TIRs and ClosedEnd Fund Shares); Joint Order Granting the
Modification of Listing Standards Requirements,
Securities Exchange Act Release No. 44725 (August
20, 2001) (ADRs).
10 CFE Policy and Procedures VIII(C) and VIII(D)
contain listing requirements that relate to the initial
eligibility criteria and maintenance standards,
respectively, for approximately equal dollarweighted, physically-settled narrow-based security
indices.
PO 00000
5 15
67
Frm 00138
Fmt 4703
Sfmt 4703
49691
since the adoption of SLB 15, which
vary from the Sample Listing Standards
set forth in SLB 15.
CFE is also filing herewith CFE Rules
215, 403, 412–415, 417, 501, 601–605,
610–615, 1801–1806, and 1901–1906,
all of which remain unchanged from the
CFE Rulebook filed with the
Commission as part of CFE’s notice
registration on Form 1–N. These rules
are being filed herewith because they
relate to the listing standard
requirements set forth in Section 6(h)(3)
of the Act 11 as further described below.
CFE Rule 517 and CFE Policy and
Procedure VII, while also referenced in
Item II below, are not filed in this
proposed rule change because they were
the subjects of a separate filing by CFE
on SEC Form 19b–4.12
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
CFE has prepared statements
concerning the purpose of, and basis for,
the proposed rule change, burdens on
competition, and comments received
from its members, participants, and
others. The text of these statements may
be examined at the places specified in
Item IV below. These statements are set
forth in Sections A, B, and C below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, Proposed Rule
Change
Section 6(h)(3) of the Act 13 sets forth
a number of requirements for listing
standards applicable to security futures
products. Among other things, that
Section provides that such listing
standards must (i) be no less restrictive
than comparable listing standards for
options traded on a national securities
exchange 14 and (ii) require that trading
in security futures products not be
readily susceptible to manipulation of
the price of such products or of the
underlying securities or options on such
securities.15
1. CFE Listing Standards
Commission staff published SLB 15,
including the Sample Listing Standards
(which were derived from typical listing
standards used by exchanges trading
options based on securities or security
indices), to provide guidance as to how
an exchange can comply with the
foregoing requirements. SLB 15 also
11 15
U.S.C. 78f(h)(3).
File No. SR–CFE–2005–02 (filed July 27,
12 See
2005).
13 15 U.S.C. 78f(h)(3).
14 15 U.S.C. 78f(h)(3)(C).
15 15 U.S.C. 78f(h)(3)(H).
E:\FR\FM\24AUN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 163 (Wednesday, August 24, 2005)]
[Notices]
[Pages 49689-49691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4628]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52296; File No. SR-BSE-2005-30]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change and Amendment No. 2 Thereto
Relating to the Removal of Unreliable Quotes From the Exchange's
Calculation of the National Best Bid or Offer
August 18, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 27, 2005, the Boston Stock Exchange, Inc. (``BSE'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by the BSE. The BSE filed Amendment No. 1 to the
proposed rule change on August 5, 2005 and withdrew Amendment No. 1 on
August 12, 2005. The BSE filed Amendment No. 2 to the proposed rule
change on August 12, 2005.\3\ The Commission is publishing this notice
to solicit comments on the proposed rule change, as amended, from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Form 19b-4 dated August 12, 2005 (``Amendment No. 2'').
Amendment No. 2 added clarifying language and corrected
typographical and technical errors.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE is proposing to add subsection (e) of Section 3 of Chapter
XII of the Boston Options Exchange (``BOX'') Rules to add provisions
for declaring an away market's quote(s) in a particular class of
option(s) unreliable, and to thereby exclude quote(s) from BOX's NBBO
determination when an away market: (1) Is disconnected from the
Intermarket Option Linkage (``Linkage''); (2) disseminates non-firm
quotes; or (3) has other quoting problems. The text of the proposed
rule change is available on the BSE's Web site (https://
www.bostonstock.com), at
[[Page 49690]]
the BSE's Office of the Secretary, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the BSE included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The BSE has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to allow BOX to exclude
an away market's quote(s) from BOX's NBBO determination in a particular
option class(es) when that away market's quote(s) are unreliable. The
BOX Trading Host, pursuant to obligations to avoid trade-throughs under
the Intermarket Option Linkage Plan, in general, filters certain orders
to either trade on BOX if the best BOX price is at the NBBO, or if the
best BOX price is not at the NBBO, to access the best price for such
order through Linkage. In certain circumstances, away markets
disseminate unreliable or inaccessible quotes in a particular option
class(es) to OPRA. BOX proposes to eliminate such away market
unreliable or inaccessible quote(s) in a particular class(es) in BOX's
NBBO determination, thereby only including in BOX's NBBO determination
market quotes that are reliable and accessible to investors. BOX seeks
only to exclude an away market's unreliable quote(s) in a particular
class(es) from BOX's NBBO determination for such time that the quote(s)
remain unreliable. Utilizing only reliable accessible quotes in the
NBBO determination provides for a more appropriate NBBO determination
and a significantly more efficient marketplace.
The procedure for declaring an away market's quote(s) unreliable
would be for the Market Operations Center (``MOC'') to either: (a)
Receive a message from the away market, OPRA, or the OLA Administrator;
or (b) confirm with the affected market, that the away market's
particular quote(s) in a class(es) are unreliable. Then the MOC would
request the Options Official declare the away market's quote(s) in a
particular class(es) unreliable. Upon a declaration that the away
market's quote(s) is unreliable, the MOC will both remove the quote(s)
from BOX's NBBO determination and promptly notify the affected away
market. Additionally, the MOC will continue to monitor the reliability
of the affected away market's quote(s) and resume inclusion of the
affected away market's quote(s) in BOX's NBBO determination at the end
of the trading day or once the quote(s) is confirmed to be reliable,
whichever occurs first. Quotes of an away market are confirmed to be
reliable once: (a) A message stating a quote(s) in a particular option
class is reliable has been received from the affected away market,
OPRA, or the OLA Administrator; or (b) the MOC has verbally received
confirmation of such from the affected away market.
2. Statutory Basis
The basis under the Act for this proposed rule change is that BOX
believes that its proposal is consistent with Section 6(b) of the
Act,\4\ and furthers the objectives of Section 6(b)(5) of the Act \5\
in that the proposed rule change is designed to perfect the mechanism
of a free and open market and a national market system, protect
investors and the public interest, and promote just and equitable
principles of trade. Excluding unreliable quotes from BOX's
determination of the NBBO would help BOX provide better executions to
customers. Currently, the execution of customer orders is delayed when
another market appears to be at the NBBO but such market's quotes are
inaccessible.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The BSE does not believe the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The BSE has neither solicited nor received comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the BSE consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-BSE-2005-30 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-BSE-2005-30. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of the
filing also will be available for inspection and copying at the
principal office of the BSE. All comments received will be posted
[[Page 49691]]
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-BSE-2005-30 and should be submitted on or before
September 14, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4628 Filed 8-23-05; 8:45 am]
BILLING CODE 8010-01-P
